Will The Entry Of Amazon Go Impact Your Business?

The online juggernaut will finally show signs of life in the Australian retail jungle later this year. But will it be a significant disruption to Australian retailers?

As we all know, the milestones of customer experience and the changing face of retail has purely been the works of technology.

For those who are unaware of the operations behind Amazon Go, the online powerhouse itself described the concept as a “new kind of store with no checkout required”

Yes you heard it - no checkout, no cashier, and no self-service machines. No fuss and no hassle, everything's seamlessly done on your phone.

Think of it like an Aldi supermarket – the grocery store will operate in smaller premises compared to the likes of Woolworths and Coles. However, unlike your ordinary Australian supermarket, Amazon Go requires shoppers to scan into the store with the Amazon app on their mobile, get tracked as they walk through the store, pick up purchases, and get automatically billed for the basket of groceries on their account.

Here, Amazon wanted to "push the boundaries of computer vision and machine learning to create a store where customers could simply take what they want and go”

The biggest thing to happen to local retailing, Amazon Go technology offers a “multi-function” store design which will inevitably increase sales per square meter – an important metric for retailers.

Retail has been around for a long time – and it only seems as if Brick and Mortar stores are making their debut now.

“Why struggle to keep brick and mortar shops open?, because, and the history of the customer experience teaches this, stores have become part of our lives, places we go for discovery, inspiration and socialisation” – Inside Retail Marketing Director, Valentina Candeloro said.

With Amazon entering Australian shores, there is no doubt that its presence, if successful, will have a significant economic impact on the retail landscape. And with it, a wave of change disrupts the Retail Playing Field, suggesting a risk big enough that Australian retailers should invest time into preparing for the Amazon storm. However, with Amazon or without, Automation in the retail industry is a trend that is inevitable.